Thai auto production grows 26% in first half of 2013
Auto production in the first half of this year reached 1.3 million units, an
increase of 26 percent year-on-year, according to Surapong
Paisitpattanapong, a spokesman for the Federation of Thai Industries (FTI)’s
automotive group.
She said that auto production in June was recorded at 217,110 units, an
increase of four percent year-on-year. However, it dropped 6.37 percent from
the previous year.
Auto production for export in June accounted for 95,139 units or 43 percent
of all auto manufacturing, an increase of 5.13 percent, while the number of
automobiles produced for export from January through June was 540,303 units,
accounting for 40.29 percent of all auto production, an increase of 14.87
percent year-on-year.
Automobile manufacturing for domestic sales last month reached 121,000
units, accounting for 56 percent of overall production, an increase of 3.14
percent year-on-year.
From January through June, some 800,000 vehicles were built, a 59 percent of
overall production volume, an increase of 35 percent year-on-year. (MCOT)
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Central bank chief sees silver lining for Thai economy
The Thai economy will recover in the second half of this
year after lethargic bouts in the first two quarters, according to central
bank governor Prasarn Trairatvorakul.
In his speech on Asia Driving the World, he said the economic comeback would
be the result of several factors including high employment rate, people’s
improved income, signs of more vigorous economy in the US and Japan, and
more investment in the private sector.
The monetary policy has become more relaxed, given the interest rate at 2.5
percent, which is reasonable compared to inflation, and commercial banks’
more flexibility in extending loans, he said.
The planned budget deficit for the 2013 and 2014 fiscal years reflects the
government’s determination to boost investment, especially on the Bt2
trillion spending for infrastructure development and Bt350 billion water
management plan.
If the gross domestic product (GDP) is lower than 5 percent, it is not a
concern as an economic slowdown is normal, he said.
The GDP is within the predicted framework, while emphasis should be given to
the global money market which remains volatile and sensitive to information,
he said, adding that the volatility could affect private businesses, which
should manage risks.
The country’s risk of higher household debt will tighten liquidity in the
household system and affect spending among lower income people, Prasarn
said.
He pointed out that China’s economic slowdown will affect economies in the
Southeast Asian region in the short term but it will be positive for the
region in the long run, as China’s economy will become sustainably strong,
expanding by 7-7.5 percent. (MCOT)
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Thailand to urgently regulate chemical residues in rice
Public Health Minister Pradit Sintavanarong will
accelerate the country’s implementation of a food safety regulation to
regulate the amount of chemical residues in accord with the World Health
Organization’s Good Manufacturing Practice to help ensure the quality of
Thai rice.
The ministry originally planned to submit a request for the international
production and testing practice in 2015 but decided to move it forward and
apply within the next six months.
The move is to help traders of packaged rice, he said.
Dr Pradit said chemicals used in fumigating packaged rice were not dangerous
to health but the Food and Drug Administration would be instructed to issue
an order limiting the use of methyl bromide to not more than 50 parts per
million (PPM) and aluminum phosphate at not higher than 0.1 PMM in order to
meet international food standards.
Deputy Commerce Minister Yanyong Phuangrach said a joint government force
will be formed to inspect rice packing factories and issue certificates to
verify packaged rice to build confidence on food safety among consumers.
He said the private sector will be invited to join the bidding process for
500,000 tonnes of rice every two weeks under the rice release scheme.
Traders will be allowed to check the quality of rice before bidding for the
grain, he said. (MCOT)
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Farmers say rice at
Bt13,500/tonne is fair price
Three Thai farmers associations have jointly proposed to
the government that it purchase white rice at Bt13,500/tonne and jasmine
rice at Bt20,000/tonne during the next harvest season, according to a senior
Commerce Ministry official.
Wiboonlasana Ruamraksa, director general of the Internal Trade Department,
said the proposal would be submitted to the National Rice Policy Committee
for consideration on Monday.
Representatives from the Thai Rice Farmers Association, Thai Farmers
Association and Thai Farmers Promotion Association said the production cost
for white rice is around Bt8,000-9,000/tonne.
They also proposed that farmers be allowed to sell rice under the pledging
scheme at the maximum of Bt400,000 per household.
It is estimated that next year’s crops will yield 28 million tonnes of paddy
nationwide.
The farmers said they would receive only Bt9,000/tonne if the government
fixed the pledging price at Bt12,000/tonne.
Rice millers allow humidity levels at only 15 percent for the rice they
purchase but the humidity of harvested paddy is normally around 28-30
percent, compelling farmers to lose Bt3,000/tonne for the high humidity in
rice, they explained. (MCOT)
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Toyota Motor Thailand
adjusts 2013 sales downward
Toyota Motor Thailand reduced this year’s sales volume to
450,000 units, down from the company’s original target at 500,000 units.
Kyoichi Tanada, president of Toyota Motor Thailand, said the adjustment was
because the company sold about 230,000 units in the first half of this year,
down 1.6 percent from the same period last year. However, the firm could
still have the biggest market share at 32 percent, he said.
From January through June, Thailand’s total car sales volume reached around
740,000 units, a 22-percent increase year-on-year, as a result of deliveries
of cars booked under last year’s ‘first-car buyer’ scheme and the
promotional campaigns of automobile manufacturers this year.
According to Toyota Motor, Kyoichi said this year’s car sale volume is
expected at 1.3 million units, a decrease of 9.5 percent year-on-year, of
which 620,000 units are forecast to be sedans and 680,000 to be vehicles for
commercial purpose.
The company set a target of exporting 438,000 vehicles this year, worth
Bt185 billion, and Bt66 billion in spare parts, making the 2013 total export
value to reach Bt251 billion. The target was higher than previously
projected where the number of exported cars expected at 412,000 units, worth
Bt168 billion, and the value of exported spare parts to Bt70 billion,
totaling Bt238 billion.
The president said the new Toyota Vios will be exported in August, the first
sedan to be exported to ASEAN.
Despite the lower sales volume this year, Thailand’s auto market is still
growing compared to the past four years. Kyoichi noted that once the ASEAN
Economic Community (AEC) takes effect in 2015 and Thailand’s new excise tax
scheme is applied in accordance with carbon dioxide (CO2) emission, the
sales volume in the next two years will reach more than 1.2 million units.
Toyota Motor Thailand’s new factory at Gateway City Industrial Estate in
eastern Thailand will start operating in this year’s third quarter, which
will make the company’s production capacity reach 300,000 units/year from
currently 220,000/year. The production ratio for export and domestic sale
will also be adjusted from 45:55 to 50:50.
Kyoichi noted that factors affecting the business will be the currency
exchange rate, oil prices, and reserved power which impacts production
capacity. (MCOT)
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